Open Water 2017

Market Deregulation

On 1st April 2017, water supply is set to become a competitive retail market as opposed to the current monopolistic approach dictated by location. This will give commercial and non-residential customers the option to switch to the supplier who will give them the best price and service level.

The Open Water programme is led by the Department for Environment, Food & Rural Affairs (Defra), and the water industry regulator, Ofwat. With around 1.2 million customers, the new £2.4 billion English retail water market is set to be the largest in the world and will:

Increase customers' freedom to choose

Encourage tailored levels of service and improved prices

Drive sustainable approaches to managing water and wastewater

Open Retail Water Market

Eligible customers can choose which retailer to buy water and wastewater services from, either as a combined service or individually. It is only the customer (front end services) that will change. Water and wastewater services will still be received from regional water companies (referred to as Wholesalers in the new market). The Wholesalers will sell services to Retailers, who will in turn offer services to non-household customers in a competitive market, by negotiating the best deal and service agreement.

LOWER PRICES

.

IMPROVED SERVICE

.

WATER EFFICIENCY

.

MORE INNOVATION

.

Market Players

WHOLESALERS

Maintain the network and manage the physical supply of water and wastewater treatment

RETAILERS

Provide billing, meter reading and customer services

MOSL

Deliver the core IT systems that will enable registration, customer switching and settlement between wholesalers and retailers

CMOS

The database that manages and stores market transactions, meter and SPID data and wholesale tariffs

TPI's

(Third Party Intermediaries) Organisations and individuals that give advice and information to help you buy water for your business

PROTECTION

The new market will offer protection to customers in the following ways:

Deemed contract - default tariff retailers can charge for a standard service, although this is unlikely to be the best deal

Guaranteed Standards of Service (GSS) - retailers must deliver service levels or pay a fee if they fail to meet them

Formal contract - to give legal protection

End user Benefits

Freedom to choose

Better value for money

Potential to negotiate lower bills and charges

Improved customer services

Reduced paperwork and administration

Services tailored for your organisation

Water efficiency advice and planning

Clear, easily accessed water usage data

Maximising This Opportunity

Eligible customers will be able to look at all the supply options available to them including procurement through a retailer or applying for a self-supply licence. Eligibility will basically depend on whether premises are used mainly for business, rather than domestic use and where an existing water and/or wastewater supplier is based. Securing the best deal and maximising efficiency will depend on many factors such as business type, size, location and usage profile.

WHAT TO DO

Review existing situation

Ensure current billing and charging is correct, if not rectify it now before switching supplier. This will ensure any refunds/rebates are maximised with your existing supplier

When

Immediately, ideally you have already started

Understanding your usage

How, when and where you use water. Benchmark your portfolio, validate current position and address excessive consumption